LOG EXPORTS TO JAPAN

Press, Volume XCVIII, Issue 29083, 21 December 1959, Page 16

LOG EXPORTS TO JAPAN

Freight Increase Curbs Trade (New Zealand Press Association) ROTORUA, December 20. Bay of Plenty timber men have 'shipped more than 45m log feet of radiata pine to Japan—bringing more than £500,000 to New Zealand since the trade began with a trial shipment in November, 1957. Next year the exporters had hoped to pack more than 60m feet of logs through Mount Maunganul to the 13 Japanese companies handling the trade. But the Japanese shipping companies, which 18 months ago were fighting each other for the trade, are seeking an increase—thought to be about 9 per cent.—in freight rates.

The result is that the importers will not negotiate any contracts for 1960 with Bay of Plenty suppliers until the rates are stabilised. It has been suggested that with higher shipping costs they may not find the trade economic and withdraw altogether.

‘‘Japan needs our logs, and needs them desperately,” said Mr E. J. Bowen, a Te Puke exporter. "She can’t buy them from Australia. because Australia is short of softwood, too; she can take only a limited amount from the west coast of the United States; and it is virtually impossible for her to ship a great deal from Russia, because the ports there are frozen over for five months a year.” Nearly 3m feet of timber—about 85.000 tons—has been handled through Mount Maungajn the year ended September 30. This has brought the Tauranga Harbour Board £9600 in wharfage fees.

To deal with this trade, one berth has been permanently occupied by the 22 ships that have loaded logs there in the year. 'Hus represents about one-third of the wharf space. Two companies hope to load as much as they can from barges in the western channel of the harbour, but most of the loading will still have to be done from the wharves.

Meanwhile, the flow of logs to the port, which earlier this year averaged about 140.000 feet a day has virtually stopped. The timber men are now waiting for the Japanese to act